His Excellency Benigno S.

Aquino III
President of the Philippines
to the Congress of the Philippines
Session Hall of the House of Representatives
July 26, 2010

(TAGALOG VERSION)

Speaker Feliciano Belmonte; Senate President Juan Ponce Enrile; Vice President Jejomar
Binay; Chief Justice Renato Corona; Former Presidents Fidel Valdez Ramos and Joseph
Ejercito Estrada; members of the House of Representatives and the Senate; distinguished
members of the diplomatic corps; my fellow workers in government;

Mga minamahal kong kababayan:

Sa bawat sandali po ng pamamahala ay nahaharap tayo sa isang sangandaan.

Sa isang banda po ay ang pagpili para sa ikabubuti ng taumbayan. Ang pagtanaw sa interes ng
nakakarami; ang pagkapit sa prinsipyo; at ang pagiging tapat sa sinumpaan nating tungkulin
bilang lingkod-bayan. Ito po ang tuwid na daan.

Sa kabilang banda ay ang pag-una sa pansariling interes. Ang pagpapaalipin sa pulitikal na

konsiderasyon, at pagsasakripisyo ng kapakanan ng taumbayan. Ito po ang baluktot na daan.

Matagal pong naligaw ang pamahalaan sa daang baluktot. Araw-araw po, lalong lumilinaw sa
akin ang lawak ng problemang ating namana. Damang-dama ko ang bigat ng aking
responsibilidad.

Sa unang tatlong linggo ng aming panunungkulan, marami po kaming natuklasan. Nais ko pong
ipahayag sa inyo ang iilan lamang sa mga namana nating suliranin at ang ginagawa naming
hakbang para lutasin ang mga ito.

Sulyap lamang po ito; hindi pa ito ang lahat ng problemang haharapin natin. Inilihim at sadyang
iniligaw ang sambayanan sa totoong kalagayan ng ating bansa.

Sa unang anim na buwan ng taon, mas malaki ang ginastos ng gobyerno kaysa sa pumasok na
kita. Lalong lumaki ang deficit natin, na umakyat na sa 196.7 billion pesos. Sa target na
kuleksyon, kinapos tayo ng 23.8 billion pesos; ang tinataya namang gastos, nalagpasan natin
ng 45.1 billion pesos.

Ang budget po sa 2010 ay 1.54 trillion pesos.

Nasa isandaang bilyong piso o anim at kalahating porsyento na lang ng kabuuan ang malaya
nating magagamit para sa nalalabing anim na buwan ng taong ito.

Halos isang porsyento na lang po ng kabuuang budget ang natitira para sa bawat buwan.

Saan naman po dinala ang pera?

Naglaan ng dalawang bilyong piso na Calamity Fund bilang paghahanda para sa mga
kalamidad na hindi pa nangyayari. Napakaliit na nga po ng pondong ito, ngunit kapapasok pa
lang natin sa panahon ng baha at bagyo, 1.4 billion pesos o sitenta porsyento na ang nagastos.

Sa kabuuan ng 108 million pesos para sa lalawigan ng Pampanga, 105 million pesos nito ay
napunta sa iisang distrito lamang. Samantala, ang lalawigan ng Pangasinan na sinalanta ng
Pepeng ay nakatanggap ng limang milyong piso lamang para sa pinsalang idinulot ng bagyong
Cosme, na nangyari noong 2008 pa.

Ibinigay po ang pondo ng Pampanga sa buwan ng eleksyon, pitong buwan pagkatapos ng

Ondoy at Pepeng. Paano kung bumagyo bukas? Inubos na ang pondo nito para sa bagyong
nangyari noong isang taon pa. Pagbabayaran ng kinabukasan ang kasakiman ng nakaraan.

Ganyan din po ang nangyari sa pondo ng MWSS. Kamakailan lamang, pumipila ang mga tao
para lang makakuha ng tubig. Sa kabila nito, minabuti pa ng liderato ng MWSS na magbigay ng
gantimpala sa sarili kahit hindi pa nababayaran ang pensyon ng mga retiradong empleyado.

Noong 2009, ang buong payroll ng MWSS ay 51.4 million pesos. Pero hindi lang naman po ito
ang sahod nila; may mga additional allowances at benefits pa sila na aabot sa 160.1 million
pesos. Sa madaling sabi, nakatanggap sila ng 211.5 million pesos noong nakaraang taon.
Beinte-kuwatro porsyento lang nito ang normal na sahod, at sitenta’y sais porsyento ang
dagdag.

Ang karaniwang manggagawa hanggang 13th month pay plus cash gift lang ang nakukuha. Sa
MWSS, aabot sa katumbas ng mahigit sa tatlumpung buwan ang sahod kasama na ang lahat
ng mga bonuses at allowances na nakuha nila.

Mas matindi po ang natuklasan natin sa pasahod ng kanilang Board of Trustees. Tingnan po
natin ang mga allowances na tinatanggap nila:

Umupo ka lang sa Board of Trustees at Board Committee meeting, katorse mil na. Aabot ng
nobenta’y otso mil ito kada buwan. May grocery incentive pa sila na otsenta mil kada taon.

Hindi lang iyon: may mid-year bonus, productivity bonus, anniversary bonus, year-end bonus, at
Financial Assistance. May Christmas bonus na, may Additional Christmas Package pa. Kada
isa sa mga ito, nobenta’y otso mil.

Sa suma total po, aabot ang lahat ng dalawa’t kalahating milyong piso kada taon sa bawat
miyembro ng Board maliban sa pakotse, technical assistance, at pautang. Uulitin ko po. Lahat
ng ito ay ibinibigay nila sa kanilang mga sarili habang hindi pa nababayaran ang mga pensyon
ng kanilang mga retirees.

Pati po ang La Mesa Watershed ay hindi nila pinatawad. Para magkaroon ng tamang supply ng
tubig, kailangang alagaan ang mga watershed. Sa watershed, puno ang kailangan. Pati po iyon
na dapat puno ang nakatayo, tinayuan nila ng bahay para sa matataas na opisyal ng MWSS.

Hindi naman sila agad maaalis sa puwesto dahil kabilang sila sa mga Midnight Appointees ni
dating Pangulong Arroyo. Iniimbestigahan na natin ang lahat nang ito. Kung mayroon pa silang
kahit kaunting hiya na natitira – sana kusa na lang silang magbitiw sa puwesto.
Pag-usapan naman po natin ang pondo para sa imprastruktura. Tumukoy ang DPWH ng
dalawandaan apatnapu’t anim na priority safety projects na popondohan ng Motor Vehicle
Users Charge. Mangangailangan po ito ng budget na 425 million pesos.

Ang pinondohan po, dalawampu’t walong proyekto lang. Kinalimutan po ang dalawandaan at
labing walong proyekto at pinalitan ng pitumpung proyekto na wala naman sa plano. Ang
hininging 425 million pesos, naging 480 million pesos pa, lumaki lalo dahil sa mga proyektong
sa piling-piling mga benepisyaryo lang napunta.

Mga proyekto po itong walang saysay, hindi pinag-aralan at hindi pinaghandaan, kaya parang
kabuteng sumusulpot.

Tapos na po ang panahon para dito. Sa administrasyon po natin, walang kota-kota, walang
tongpats, ang pera ng taumbayan ay gagastusin para sa taumbayan lamang.

Meron pa po tayong natuklasan. Limang araw bago matapos ang termino ng nakaraang
administrasyon, nagpautos silang maglabas ng 3.5 billion pesos para sa rehabilitasyon ng mga
nasalanta nina Ondoy at Pepeng.

Walumpu’t anim na proyekto ang paglalaanan dapat nito na hindi na sana idadaan sa public
bidding. Labingsiyam sa mga ito na nagkakahalaga ng 981 million pesos ang muntik nang
makalusot. Hindi pa nailalabas ang Special Allotment Release Order ay pirmado na ang mga
kontrata.

Buti na lang po ay natuklasan at pinigilan ito ni Secretary Rogelio Singson ng DPWH. Ngayon
po ay dadaan na ang kabuuan ng 3.5 billion pesos sa tapat na bidding, at magagamit na ang
pondo na ito sa pagbibigay ng lingap sa mga nawalan ng tahanan dahil kina Ondoy at Pepeng.

Pag-usapan naman natin ang nangyari sa NAPOCOR. Noong 2001 hanggang 2004, pinilit ng
gobyerno ang NAPOCOR na magbenta ng kuryente nang palugi para hindi tumaas ang presyo.
Tila ang dahilan: pinaghahandaan na nila ang eleksyon.

Dahil dito, noong 2004, sumagad ang pagkakabaon sa utang ng NAPOCOR. Napilitan ang
pambansang gobyerno na sagutin ang dalawandaang bilyong pisong utang nito.

Ang inakala ng taumbayan na natipid nila sa kuryente ay binabayaran din natin mula sa kaban
ng bayan. May gastos na tayo sa kuryente, binabayaran pa natin ang dagdag na pagkakautang
ng gobyerno.

Kung naging matino ang pag-utang, sana’y nadagdagan ang ating kasiguruhan sa supply ng
kuryente. Pero ang desisyon ay ibinatay sa maling pulitika, at hindi sa pangangailangan ng
taumbayan. Ang taumbayan, matapos pinagsakripisyo ay lalo pang pinahirapan.

Ganito rin po ang nangyari sa MRT. Sinubukan na namang bilhin ang ating pagmamahal. Pinilit
ang operator na panatilihing mababa ang pamasahe.

Hindi tuloy nagampanan ang garantiyang ibinigay sa operator na mababawi nila ang kanilang
puhunan. Dahil dito, inutusan ang Landbank at Development Bank of the Philippines na bilhin
ang MRT.
Ang pera ng taumbayan, ipinagpalit sa isang naluluging operasyon.

Dumako naman po tayo sa pondo ng NFA.

Noong 2004: 117,000 metric tons ang pagkukulang ng supply ng Pilipinas. Ang binili nila,
900,000 metric tons. Kahit ulitin mo pa ng mahigit pitong beses ang pagkukulang, sobra pa rin
ang binili nila.

Noong 2007: 589,000 metric tons ang pagkukulang ng supply sa Pilipinas. Ang binili nila, 1.827
million metric tons. Kahit ulitin mo pa ng mahigit tatlong beses ang pagkukulang, sobra na
naman ang binili nila.

Ang masakit nito, dahil sobra-sobra ang binibili nila taun-taon, nabubulok lang pala sa mga
kamalig ang bigas, kagaya ng nangyari noong 2008.

Hindi po ba krimen ito, na hinahayaan nilang mabulok ang bigas, sa kabila ng apat na milyong
Pilipinong hindi kumakain ng tatlong beses sa isang araw?

Ang resulta nito, umabot na sa 171.6 billion pesos ang utang ng NFA noong Mayo ng taong ito.

Ang tinapon na ito, halos puwede na sanang pondohan ang mga sumusunod:

Ang budget ng buong Hudikatura, na 12.7 billion pesos sa taong ito.

Ang Conditional Cash Transfers para sa susunod na taon, na nagkakahalaga ng 29.6 billion
pesos.

Ang lahat ng classroom na kailangan ng ating bansa, na nagkakahalaga ng 130 billion pesos.

Kasuklam-suklam ang kalakarang ito. Pera na, naging bato pa.

Narinig po ninyo kung paano nilustay ang kaban ng bayan. Ang malinaw po sa ngayon: ang
anumang pagbabago ay magmumula sa pagsiguro natin na magwawakas na ang pagiging
maluho at pagwawaldas.

Kaya nga po mula ngayon: ititigil na natin ang paglulustay sa salapi ng bayan. Tatanggalin natin
ang mga proyektong mali.

Ito po ang punto ng tinatawag nating zero-based approach sa ating budget. Ang naging
kalakaran po, taun-taon ay inuulit lamang ang budget na puno ng tagas. Dadagdagan lang nang
konti, puwede na.

Sa susunod na buwan ay maghahain tayo ng budget na kumikilala nang tama sa mga

problema, at magtutuon din ng pansin sa tamang solusyon.

Ilan lang ito sa mga natuklasan nating problema. Heto naman po ang ilang halimbawa ng mga
hakbang na ginagawa natin.
Nandiyan po ang kaso ng isang may-ari ng sanglaan. Bumili siya ng sasakyang tinatayang nasa
dalawampu’t anim na milyong piso ang halaga.

Kung kaya mong bumili ng Lamborghini, bakit hindi mo kayang magbayad ng buwis?

Nasampahan na po ito ng kaso. Sa pangunguna nina Finance Secretary Cesar Purisima,

Justice Secretary Leila de Lima, BIR Commissioner Kim Henares at Customs Commissioner
Lito Alvarez, bawat linggo po ay may bago tayong kasong isinasampa kontra sa mga smuggler
at sa mga hindi nagbabayad ng tamang buwis.

Natukoy na rin po ang salarin sa mga kaso nina Francisco Baldomero, Jose Daguio at Miguel
Belen, tatlo sa anim na insidente ng extralegal killings mula nang umupo tayo.

Singkuwenta porsyento po ng mga insidente ng extralegal killings ang patungo na sa kanilang

resolusyon.

Ang natitira pong kalahati ay hindi natin tatantanan ang pag-usig hanggang makamit ang
katarungan.

Pananagutin natin ang mga mamamatay-tao. Pananagutin din natin ang mga corrupt sa
gobyerno.

Nagsimula nang mabuo ang ating Truth Commission, sa pangunguna ni dating Chief Justice
Hilario Davide. Hahanapin natin ang katotohanan sa mga nangyari diumanong katiwalian noong
nakaraang siyam na taon.

Sa loob ng linggong ito, pipirmahan ko ang kauna-unahang Executive Order na nagtatalaga sa

pagbuo nitong Truth Commission.

Kung ang sagot sa kawalan ng katarungan ay pananagutan, ang sagot naman sa kakulangan
natin sa pondo ay mga makabago at malikhaing paraan para tugunan ang mga pagkatagal-
tagal nang problema.

Napakarami po ng ating pangangailangan: mula sa edukasyon, imprastruktura, pangkalusugan,

pangangailangan ng militar at kapulisan, at marami pang iba. Hindi kakasya ang pondo para
mapunan ang lahat ng ito.

Kahit gaano po kalaki ang kakulangan para mapunan ang mga listahan ng ating
pangangailangan, ganado pa rin ako dahil marami nang nagpakita ng panibagong interes at
kumpyansa sa Pilipinas.

Ito ang magiging solusyon: mga Public-Private Partnerships. Kahit wala pa pong pirmahang
nangyayari dito, masasabi kong maganda ang magiging bunga ng maraming usapin ukol dito.

May mga nagpakita na po ng interes, gustong magtayo ng expressway na mula Maynila,

tatahak ng Bulacan, Nueva Ecija, Nueva Vizcaya, hanggang sa dulo ng Cagayan Valley nang
hindi gugugol ang estado kahit na po piso.

Sa larangan ng ating Sandatahang Lakas:

Mayroon po tayong 36,000 nautical miles ng baybayin. Ang mayroon lamang tayo: tatlumpu’t
dalawang barko. Itong mga barkong ito, panahon pa ni MacArthur.

May nagmungkahi sa atin, ito ang proposisyon: uupahan po nila ang headquarters ng Navy sa
Roxas Boulevard at ang Naval Station sa Fort Bonifacio.

Sagot po nila ang paglipat ng Navy Headquarters sa Camp Aguinaldo. Agaran, bibigyan tayo ng
isandaang milyong dolyar. At dagdag pa sa lahat nang iyan, magsusubi pa sila sa atin ng kita
mula sa mga negosyong itatayo nila sa uupahan nilang lupa.

Sa madali pong sabi: Makukuha natin ang kailangan natin, hindi tatayo gagastos, kikita pa tayo.

Marami na pong nag-alok at nagmungkahi sa atin, mula lokal hanggang dayuhang negosyante,
na magpuno ng iba’t ibang pangangailangan.

Mula sa mga public-private partnerships na ito, lalago ang ating ekonomiya, at bawat Pilipino
makikinabang. Napakaraming sektor na matutulungan nito.

Maipapatayo na po ang imprastrukturang kailangan natin para palaguin ang turismo.

Sa agrikultura, makapagtatayo na tayo ng mga grains terminals, refrigeration facilities, maayos

na road networks at post-harvest facilities.

Kung maisasaayos natin ang ating food supply chain sa tulong ng pribadong sektor, sa halip na
mag-angkat tayo ay maari na sana tayong mangarap na mag-supply sa pandaigdigang
merkado.

Kung maitatayo ang minumungkahi sa ating railway system, bababa ang presyo ng bilihin. Mas
mura, mas mabilis, mas maginhawa, at makakaiwas pa sa kotong cops at mga kumokotong na
rebelde ang mga bumibiyahe.

Paalala lang po: una sa ating plataporma ang paglikha ng mga trabaho, at nanggagaling ang
trabaho sa paglago ng industriya. Lalago lamang ang industriya kung gagawin nating mas
malinis, mas mabilis, at mas maginhawa ang proseso para sa mga gustong magnegosyo.

Pabibilisin natin ang proseso ng mga proyektong sumasailalim sa Build-Operate-Transfer. Sa

tulong ng lahat ng sangay ng gobyerno at ng mga mamamayan, pabababain natin sa anim na
buwan ang proseso na noon ay inaabot ng taon kung hindi dekada.

May mga hakbang na rin pong sinisimulan ang DTI, sa pamumuno ni Secretary Gregory
Domingo:

Ang walang-katapusang pabalik-balik sa proseso ng pagrehistro ng pangalan ng kumpanya, na

kada dalaw ay umaabot ng apat hanggang walong oras, ibababa na natin sa labinlimang
minuto.

Ang dating listahan ng tatlumpu’t anim na dokumento, ibababa natin sa anim. Ang dating
walong pahinang application form, ibababa natin sa isang pahina.
Nananawagan ako sa ating mga LGUs. Habang naghahanap tayo ng paraan para gawing mas
mabilis ang pagbubukas ng mga negosyo, pag-aralan din sana nila ang kanilang mga proseso.
Kailangan itong gawing mas mabilis, at kailangan itong itugma sa mga sinisumulan nating
reporma.

Negosyante, sundalo, rebelde, at karaniwang Pilipino, lahat po makikinabang dito. Basta po

hindi dehado ang Pilipino, papasukin po natin lahat iyan. Kailangan na po nating simulan ang
pagtutulungan para makamit ito. Huwag nating pahirapan ang isa’t isa.

Parating na po ang panahon na hindi na natin kailangang mamili sa pagitan ng seguridad ng

ating mamamayan o sa kinabukasan ng inyong mga anak.

Oras na maipatupad ang public-private partnerships na ito, mapopondohan ang mga serbisyong
panlipunan, alinsunod sa ating plataporma.

Magkakapondo na po para maipatupad ang mga plano natin sa edukasyon.

Mapapalawak natin ang basic education cycle mula sa napakaikling sampung taon tungo sa
global standard na labindalawang taon.

Madadagdagan natin ang mga classroom. Mapopondohan natin ang service contracting sa
ilalim ng GASTPE.

Pati ang conditional cash transfers, na magbabawas ng pabigat sa bulsa ng mga pamilya,
madadagdan na rin ng pondo.

Maipapatupad ang plano natin sa PhilHealth.

Una, tutukuyin natin ang tunay na bilang ng mga nangangailangan nito. Sa ngayon, hindi
magkakatugma ang datos. Sabi ng PhilHealth sa isang bibig, walumpu’t pitong porsyento na
raw ang merong coverage. Sa kabilang bibig naman, singkuwenta’y tres porsyento naman.
Ayon naman sa National Statistics Office, tatlumpu’t walong porsyento ang may coverage.

Ngayon pa lang, kumikilos na si Secretary Dinky Soliman at ang DSWD upang ipatupad ang
National Household Targetting System, na magtutukoy sa mga pamilyang higit na
nagangailangan ng tulong. Tinatayang siyam na bilyon ang kailangan para mabigyan ng
PhilHealth ang limang milyong pinakamaralitang pamilyang Pilipino.

Napakaganda po ng hinaharap natin. Kasama na po natin ang pribadong sektor, at kasama na

rin natin ang League of Provinces, sa pangunguna nina Governor Alfonso Umali kasama sina
Governor L-Ray Villafuerte at Governor Icot Petilla. Handa na pong makipagtulungan para
makibahagi sa pagtustos ng mga gastusin. Alam ko rin pong hindi magpapahuli ang League of
Cities sa pangunguna ni Mayor Oscar Rodriguez.

Kung ang mga gobyernong lokal ay nakikiramay na sa ating mga adhikain, ang Kongreso
namang pinanggalingan ko, siguro naman maasahan ko din.

Nagpakitang-gilas na po ang gabinete sa pagtukoy ng ating mga problema at sa paglulunsad ng

mga solusyon sa loob lamang ng tatlong linggo.
Nang bagyo pong Basyang, ang sabi sa atin ng mga may prangkisa sa kuryente, apat na araw
na walang kuryente. Dahil sa mabilis na pagkilos ni Secretary Rene Almendras at ng
Department of Energy, naibalik ang kuryente sa halos lahat sa loob lamang ng beinte-kwatro
oras.

Ito pong sinasabing kakulangan sa tubig sa Metro Manila, kinilusan agad ni Secretary Rogelio
Singson at ng DPWH. Hindi na siya naghintay ng utos, kaya nabawasan ang perwisyo.

Nakita na rin natin ang gilas ng mga hinirang nating makatulong sa Gabinete. Makatuwiran
naman po sigurong umasa na hindi na sila padadaanin sa butas ng karayom para makumpirma
ng Commission on Appointments. Kung mangyayari po ito, marami pa sa mga mahuhusay na
Pilipino ang maeengganyong magsilbi sa gobyerno.

Sa lalong madaling panahon po, uupo na tayo sa LEDAC at pag-uusapan ang mga
mahahalagang batas na kailangan nating ipasa. Makakaasa kayo na mananatiling bukas ang
aking isipan, at ang ating ugnayan ay mananatiling tapat.

Isinusulong po natin ang Fiscal Responsibility Bill, kung saan hindi tayo magpapasa ng batas na
mangangailangan ng pondo kung hindi pa natukoy ang panggagalingan nito. May 104.1 billion
pesos tayong kailangan para pondohan ang mga batas na naipasa na, ngunit hindi maipatupad.

Kailangan din nating isaayos ang mga insentibong piskal na ibinigay noong nakaraan. Ngayong
naghihigpit tayo ng sinturon, kailangang balikan kung alin sa mga ito ang dapat manatili at kung
ano ang dapat nang itigil.

Huwag po tayong pumayag na magkaroon ng isa pang NBN-ZTE. Sa lokal man o dayuhan
manggagaling ang pondo, dapat dumaan ito sa tamang proseso. Hinihingi ko po ang tulong
ninyo upang amiyendahan ang ating Procurement Law.

Ayon po sa Saligang Batas, tungkulin ng estado ang siguruhing walang lamangan sa merkado.
Bawal ang monopolya, bawal ang mga cartel na sasakal sa kumpetisyon. Kailangan po natin ng
isang Anti-Trust Law na magbibigay-buhay sa mga prinsipyong ito. Ito ang magbibigay ng
pagkakataon sa mga Small- at Medium-scale Enterprises na makilahok at tumulong sa paglago
ng ating ekonomiya.

Ipasa na po natin ang National Land Use Bill.

Una rin pong naging batas ng Commonwealth ang National Defense Act, na ipinasa noon pang
1935. Kailangan nang palitan ito ng batas na tutugon sa pangangailangan ng pambansang
seguridad sa kasalukuyan.

Nakikiusap po akong isulong ang Whistleblower’s Bill upang patuloy nang iwaksi ang kultura ng
takot at pananahimik.

Palalakasin pa lalo ang Witness Protection Program. Alalahanin po natin na noong taong 2009
hanggang 2010, may nahatulan sa 95% ng mga kaso kung saan may witness na sumailalim sa
programang ito.
Kailangang repasuhin ang ating mga batas. Nanawagan po akong umpisahan na
angrekodipikasyon ng ating mga batas, upang siguruhing magkakatugma sila at hindi salu-
salungat.

Ito pong mga batas na ito ang batayan ng kaayusan, ngunit ang pundasyon ng lahat ng
ginagawa natin ay ang prinsipyong wala tayong mararating kung walang kapayapaan at
katahimikan.

Dalawa ang hinaharap nating suliranin sa usapin ng kapayapaan: ang situwasyon sa Mindanao,
at ang patuloy na pag-aaklas ng CPP-NPA-NDF.

Tungkol sa situwasyon sa Mindanao: Hindi po nagbabago ang ating pananaw. Mararating

lamang ang kapayapaan at katahimikan kung mag-uusap ang lahat ng apektado: Moro, Lumad,
at Kristiyano. Inatasan na natin si Dean Marvic Leonen na mangasiwa sa ginagawa nating
pakikipag-usap sa MILF.

Iiwasan natin ang mga pagkakamaling nangyari sa nakaraang administrasyon, kung saan
binulaga na lang ang mga mamamayan ng Mindanao. Hindi tayo puwedeng magbulag-bulagan
sa mga dudang may kulay ng pulitika ang proseso, at hindi ang kapakanan ng taumbayan ang
tanging interes.

Kinikilala natin ang mga hakbang na ginagawa ng MILF sa pamamagitan ng pagdidisplina sa

kanilang hanay. Inaasahan natin na muling magsisimula ang negosasyon pagkatapos ng
Ramadan.

Tungkol naman po sa CPP-NPA-NDF: handa na ba kayong maglaan ng kongkretong mungkahi,

sa halip na pawang batikos lamang?

Kung kapayapaan din ang hangad ninyo, handa po kami sa malawakang tigil-putukan. Mag-
usap tayo.

Mahirap magsimula ang usapan habang mayroon pang amoy ng pulbura sa hangin.
Nananawagan ako: huwag po natin hayaang masayang ang napakagandang pagkakataong ito
upang magtipon sa ilalim ng iisang adhikain.

Kapayapaan at katahimikan po ang pundasyon ng kaunlaran. Habang nagpapatuloy ang

barilan, patuloy din ang pagkakagapos natin sa kahirapan.

Dapat din po nating mabatid: ito ay panahon ng sakripisyo. At ang sakripisyong ito ay magiging
puhunan para sa ating kinabukasan. Kaakibat ng ating mga karapatan at kalayaan ay ang
tungkulin natin sa kapwa at sa bayan.

Inaasahan ko po ang ating mga kaibigan sa media, lalo na sa radyo at sa print, sa mga
nagbablock-time, at sa community newspapers, kayo na po mismo ang magbantay sa inyong
hanay.

Mabigyang-buhay sana ang mga batayang prinsipyo ng inyong bokasyon: ang magbigay-linaw
sa mahahalagang isyu; ang maging patas at makatotohanan, at ang itaas ang antas ng
pampublikong diskurso.
Tungkulin po ng bawat Pilipino na tutukan ang mga pinunong tayo rin naman ang nagluklok sa
puwesto. Humakbang mula sa pakikialam tungo sa pakikilahok. Dahil ang nakikialam, walang-
hanggan ang reklamo. Ang nakikilahok, nakikibahagi sa solusyon.

Napakatagal na pong namamayani ang pananaw na ang susi sa asenso ay ang intindihin ang
sarili kaysa intindihin ang kapwa. Malinaw po sa akin: paano tayo aasenso habang
nilalamangan ang kapwa?

Ang hindi nabigyan ng pagkakataong mag-aral, paanong makakakuha ng trabaho? Kung

walang trabaho, paanong magiging konsumer? Paanong mag-iimpok sa bangko?

Ngunit kung babaliktarin natin ang pananaw—kung iisipin nating “Dadagdagan ko ang
kakayahan ng aking kapwa”—magbubunga po ito, at ang lahat ay magkakaroon ng
pagkakataon.

Maganda na po ang nasimulan natin. At mas lalong maganda po ang mararating natin. Ngunit
huwag nating kalimutan na mayroong mga nagnanasang hindi tayo magtagumpay. Dahil kapag
hindi tayo nagtagumpay, makakabalik na naman sila sa kapangyarihan, at sa pagsasamantala
sa taumbayan.

Akin pong paniwala na Diyos at taumbayan ang nagdala sa ating kinalalagyan ngayon. Habang
nakatutok tayo sa kapakanan ng ating kapwa, bendisyon at patnubay ay tiyak na maaasahan
natin sa Poong Maykapal. At kapag nanalig tayo na ang kasangga natin ay ang Diyos, mayroon
ba tayong hindi kakayanin?

Ang mandato nating nakuha sa huling eleksyon ay patunay na umaasa pa rin ang Pilipino sa
pagbabago. Iba na talaga ang situwasyon. Puwede na muling mangarap. Tayo nang tumungo
sa katuparan ng ating mga pinangarap.

Maraming salamat po.

 His Excellency Benigno S. Aquino III
President of the Philippines
to the Congress of the Philippines
Session Hall of the House of Representatives
July 26, 2010

(ENGLISH VERSION)

Speaker Feliciano Belmonte; Senate President Juan Ponce Enrile; Vice President Jejomar
Binay, Chief Justice Renato Corona, Former Presidents Fidel Valdez Ramos and Joseph
Ejercito Estrada; Members of the House of Representatives and the Senate; distinguished
members of the diplomatic corps;

My beloved countrymen:

Our administration is facing a forked road. On one direction, decisions are made to protect the
welfare of our people; to look after the interest of the majority; to have a firm grip on principles;
and to be faithful to the public servant’s sworn oath to serve the country honestly.

This is the straight path.

On the other side, personal interest is the priority, and where one becomes a slave to political
considerations to the detriment of our nation.

This is the crooked path.

For a long time, our country lost its way in the crooked path. As days go by (since I became
President), the massive scope of the problems we have inherited becomes much clearer. I
could almost feel the weight of my responsibilities.

In the first three weeks of our administration, we discovered many things, and I will report to you
some of the problems we have uncovered, and the steps we are taking to solve them.

This report is merely a glimpse of our situation. It is not the entire picture of the crises we are
facing. The reality was hidden from our people, who seem to have been deliberately obfuscated
on the real state of our nation.

In the first six years of this year, government expenditure exceeded our revenues. Our deficit
further increased to PhP196.7 billion. Our collection targets, which lack PhP23.8 billion, were
not fully met, while we went beyond our spending by PhP45.1 billion.

Our budget for 2010 is PhP1.54 trillion. Of this, only PhP100 billion - or 6.5% of the total budget
– can be used for the remaining six months of the current year. Roughly 1% of the total budget
is left for each of the remaining month.

Where did the funds go?

A calamity fund worth PhP2 billion was reserved in preparation for anticipated calamities. Of this
already miniscule amount, at a time when the rainy season has yet to set in, PhP1.4 billion or
70% was already spent.

The entire province of Pampanga received PhP108 million. Of this, PhP105 million went to only
one district. On the other hand, the province of Pangasinan, which was severely affected by
Typhoon Pepeng, received a mere PhP5 million, which had to be used to fix damages inflicted
not even by Pepeng, but by a previous typhoon, Cosme.

The funds were released on election month, which was seven months after the typhoon. What
will happen if a typhoon arrives tomorrow? The fund has been used up to repair damage from
typhoons that hit us last year. Our future will pay for the greed of yesterday.

This is also what happened to the funds of the MWSS. Just recently, people lined up for water
while the leadership of the MWSS rewarded itself even though the pensions of retired
employees remain unpaid.

The entire payroll of the MWSS amounts to 51.4 million pesos annually. But this isn’t the full
extent of what they receive: they receive additional allowances and benefits amounting to 81.1
million pesos. In short, they receive 211.5 million pesos annually. Twenty four percent of this is
for normal salaries, and sixty six percent is added on.

The average worker receives up to 13th month pay plus a cash gift. In the MWSS, they receive
the equivalent of over thirty months pay if you include all their additional bonuses and
allowances.

What we discovered in the case of the salaries of their board of trustees is even more shocking.
Let’s take a look at the allowances they receive:

Attending board of trustees and board committee meetings, and you get fourteen thousands
pesos. This totals ninety eight thousand pesos a month. They also get an annual grocery
incentive of eighty thousand pesos.

And that’s not all. They get a mid-year bonus, productivity bonus, anniversary bonus, year-end
bonus, and financial assistance. They not only get a Christmas bonus, but an additional
Christmas package as well. Each of these amounts to eighty thousand pesos. All in all, each
member of the board receives two and a half million pesos a year exclusive of car service,
technical assistance, and loans. Let me repeat. They award themselves all of these while being
in arrears for the pensions of their retired employees.

Even the La Mesa watershed wasn’t spared. In order to ensure an adequate supply of water, we
need to protect our watersheds. In watersheds, trees are needed. Where there should be trees,
they built homes for the top officials of the MWSS.

We cannot remove them from their positions quickly because they are among the midnight
appointees of former president Arroyo. We are investigating all of these things. But if they have
any shame left, they should voluntarily relinquish their positions.

Now let’s discuss funds for infrastructure. The DPWH identified two hundred forty six priority
safety projects to be funded by the motor vehicle user’s charge. This needs a budget of 425
million pesos. What they ended up funding were only 28 projects. They disregarded 218
projects and replaced these with seventy projects that weren’t in the plans. The 425 million
pesos originally asked for became 480 million pesos, increasing because of projects allocated
for a favored few.

These projects make no sense: unstudied and unprepared for, sprouting like mushrooms.

The era of such projects is at an end. Under our administration, there will be no quotas, there
will be no overpricing, the funds of the people will be spent for the people.

There’s more. Five days before the term of the previous administration ended, they ordered 3.5
billion pesos to be released for the rehabilitation of those affected by typhoons Ondoy and
Pepeng. This was supposed to fund eighty-nine projects. But nineteen of these projects
amounting to 981 million pesos didn’t go through public bidding. Special Allotment Release
Orders hadn’t even been released and yet the contracts were already signed. It’s a good thing
Secretary Rogelio Singson spotted and stopped them. Instead, they will all go through the
proper bidding, and the funds will be used to provide relief to those who lost their homes due to
typhoons Ondoy and Pepeng.

Let’s discuss what happened in Napocor. From 2001 to 2004, the government forced Napocor
to sell electricity at a loss to prevent increases in electricity rates. The real motivation for this is
that they were preparing for the election.

As a result, in 2004, NAPOCOR slumped deeply in debt. The government was obligated to
shoulder the 200 billion pesos it owed.

What the public thought they saved from electricity, we are now paying for using public coffers.
Not only are we paying for the cost of electricity; we are also paying for the interest arising from
the debt.

If the money we borrowed was used properly, then there would be added assurance that
constant supply of electricity is available. However, this decision was based on bad politics, not
on the true needs of the people. The people, after having to sacrifice, suffered even more.

This is also what happened to the MRT. The government tried again to buy the people’s love.
The operator was forced to keep the rates low.

In effect, the guarantee given to the operator that he will still be able to recoup his investment
was not fulfilled. Because of this, Landbank and the Development Bank of the Philippines were
ordered to purchase the MRT.

The money of the people was used in exchange for an operation that was losing money.

Let us now move on to the funds of the National Food Authority (NFA).

In 2004: 117,000 metric tons (of rice) was the shortage in the supply of the Philippines. What
they (the government) bought were 900,000 metric tons. Even if you multiply for more than
seven times the amount of shortage, they still bought more than what was needed.
In 2007: 589,000 metric tons was the shortage in the supply of the Philippines. What they
bought were 1.827 million metric tons. Even if you multiply for more than three times the amount
of shortage, they again bought more than what was needed.

What hurts is, because they keep purchasing more than what they need year after year, the
excess rice that had to be stored in warehouses ended up rotting, just like what happened in
2008.

Is this not a crime, letting rice rot, despite the fact that there are 4 million Filipinos who do not
eat three times a day?

The result is NFA’s current debt of 177 billion pesos.

This money that was wasted could have funded the following:

• The budget of the entire judiciary, which is at 12.7 billion pesos this year.
• The Conditional Cash Transfers for the following year, which cost 29.6 billion pesos.
• All the classrooms that our country needs, which cost 130 billion pesos.

This way of doing things is revolting. Money was there only to be wasted.

You have heard how the public coffers were squandered. This is what is clear to me now:
change can only come from our determination to stamp out this extravagance and profligacy.

That is why starting now: we will stop the wasteful use of government funds. We will eradicate
projects that are wrong.

This is the point of what we call the zero-based approach in our budget. What used to be the
norm was every year, the budget merely gets re- enacted without plugging the holes.

Next month we will be submitting a budget that accurately identifies the problem and gives
much attention on the right solution.

Those that I have mentioned were only some of the problems we have discovered. Here now
are examples of the steps we are undertaking to solve them.

There is a case of one pawnshop owner. He purchased a vehicle at an estimated cost of 26

million pesos.

If he can afford to buy a Lamborghini, why can’t he pay his taxes?

A case has already been filed against him. Through the leadership of Finance Secretary Cesar
Purisima, BIR Commissioner Kim Henares, Customs Commissioner Lito Alvarez, and Justice
Secretary Leila de Lima, every week we have new cases filed against smugglers and against
those who do not pay the right taxes.

We have also already identified the suspects of the cases of Francisco Baldomero, Jose Daguio
and Miguel Belen, 3 of the 6 incidents of extralegal killings since we assumed the Presidency.
Fifty percent (50%) of these incidents of extralegal killings are now on their way to being
resolved.

We will not stop the pursuit of the remaining half of these killings until justice has been
achieved.

We will hold murderers accountable. We will also hold those who are corrupt that work in
government accountable for their actions.

We have begun forming our Truth Commission, through the leadership of former Chief Justice
Hilario Davide. We will search for the truth on the alleged wrongdoing committed in the last nine
years.

This week, I will sign the first ever Executive Order on the formation of this Truth Commission.

If the answer to justice is accountability, the answer to the dearth in funds is a new and creative
approach to our long-standing problems.

We have so many needs: from education, infrastructure, health, military, police and more. Our
funds will not be enough to meet them.

No matter how massive the deficit is that may keep us from paying for this list of needs, I am
heartened because many have already expressed renewed interest and confidence in the
Philippines.

Our solution: public-private partnerships. Although no contract has been signed yet, I can say
that ongoing talks with interested investors will yield fruitful outcomes.

There are some who have already shown interest and want to build an expressway from Manila
that will pass through Bulacan, Nueva Ecija, Nueva Vizcaya, until the end of Cagayan Valley,
without the government having to spend a single peso.

On national defense:

We have 36,000 nautical miles of shoreline, but we only have 32 boats. These boats are as old
as the time of (US General Douglas) MacArthur.

Some had this proposition: they will rent the Navy headquarters on Roxas Boulevard and the
Naval Station in Fort Bonifacio.

They will take care of the funding necessary to transfer the Navy Headquarters to Camp
Aguinaldo. Immediately, we will be given 100 million dollars. Furthermore, they will give us a
portion of their profits from their businesses that would occupy the land they will rent.

In short, we will meet our needs without spending, and we will also earn.

There have already been many proposals from local to foreign investors to provide for our
various needs.
From these public-private partnerships, our economy will grow and every Filipino will be the
beneficiary. There are so many sectors that could benefit from this.

We will be able to construct the needed infrastructure in order to help tourism grow.

In agriculture, we will be able to have access to grains terminals, refrigeration facilities, orderly
road networks and post-harvest facilities.

If we can fix out food supply chain with the help of the private sector, instead of importing, we
will hopefully be able to supply for the needs of the global market.

The prices of commodities will go down if we are able to make this efficient railway system a
reality. It will be cheaper and faster, and it will be easier for travelers to avoid crooked cops and
rebels.

A reminder to all: creating jobs is foremost on our agenda, and the creation of jobs will come
from the growth of our industries. Growth will only be possible if we streamline processes to
make them predictable, reliable and efficient for those who want to invest.

We make sure that the Build-Operate-and-Transfer projects will undergo quick and efficient
processes. With the help of all government agencies concerned and the people, a process that
used to take as short as a year and as long as a decade will now only take six months.

The Department of Trade and Industry has already taken steps to effect this change, under the
leadership of Secretary Gregory Domingo:

The never-ending horror story of registering business names, which used to take a minimum of
four to eight hours depending on the day, will be cut down drastically to fifteen minutes.

What used to be a check list of thirty-six documents will be shortened to a list of six, and the old
eight-page application form will be whittled down to one page.

I call on our local government units to review its own procedures. While we look for more ways
to streamline our processes to make business start-ups easier, I hope the LGUs can also find
ways to implement reforms that will be consistent with the ones we have already started.

All will certainly benefit from this streamlining -- be it businessmen, soldiers, rebels and ordinary
Filipinos. As long as the interests of Filipinos will not be jeopardized, we will explore all available
avenues to make this a reality. We must start now, and we should all help achieve this and not
stand in each other’s way.

The time when we will no longer be made to choose between our people’s security and the
future of our children is upon us now.

Once we implement these public-private partnerships, we will be able to fund public service in
accordance with our platform.

This will enable us to fund our plans for education.

We will be able to expand our basic education cycle from seven years to the global standard of
twelve years.

We can build more classrooms, and we will fund service contracting under the Government
Assistance to Students and Teachers in Private Education Program (GASTPE).

Conditional cash transfers that aim to lessen the burden of education on parents will also be
funded if this partnership becomes a reality.

Our plans for improving PhilHealth can now be within reach.

First, we will identify the correct number of Filipinos who sorely need PhilHealth coverage, as
current data is conflicting on this matter. On one hand, PhilHealth says that eighty-seven
percent (87%) of Filipinos are covered, then lowers the number to only fifty-three percent (53%).
On the other hand, the National Statistics Office says that only thirty-eight percent (38%) of
Filipinos are covered by Philhealth.Even as we speak, Secretary Dinky Soliman and the
Department of Social Welfare and Development are moving to implement the National
Household Targeting System that will identify the families that most urgently need assistance.
An estimated 9 billion pesos is needed in order to provide coverage for five million poor
Filipinos.

Our country is beginning to see better days ahead. The private sector, the League of Provinces
headed by Governor Alfonso Umali, together with Governors L-Ray Villafuerte and Icot Petilla,
are now ready to do their share when it comes to shouldering the financial burden. I know that
the League of Cities under the leadership of Mayor Oscar Rodriguez will not be far behind.

If the local governments share in our goals, I know that I can surely count on Congress, the
institution where I began public service, to push for our agenda for change.

Our Cabinet has already showed it skill by identifying not just problems but also proposing
solutions in a matter of three weeks.

In the aftermath of Typhoon Basyang, we were told by those in the power sector that we would
be without electricity for four days. The quick action of Secretary Rene Almendras and the
Department of Energy resulted in the restoration of power to almost all those affected within
twenty-four hours.

The so-called water shortage in Metro Manila was quickly attended to by Secretary Rogelio
Singson and the Department of Public Works and Highways. Secretary Singson did it without
prodding, which alleviated the suffering of those affected.

We also witnessed the competence and initiative of those we appointed to be part of our
Cabinet. It is but just that they not be forced to go through the eye of a needle to be confirmed
by the Commission on Appointments. Should this happen, competent Filipinos will be
encouraged to help our country by becoming public servants.

In the soonest possible time, we will convene the Legislative Executive Development Advisory
Council (LEDAC) to discuss the important bills that need to be addressed. Rest assured that I
will keep an open mind and treat you honorably.
We will push for the Fiscal Responsibility Bill, which will limit spending bills only for
appropriations that have identified a source of funding. We need 104.1 billion pesos to fund
those laws already passed but whose implementation remains pending because of lack of
funds.

We will re-evaluate fiscal incentives given in the past. Now that we are tightening our purse
strings, we need to identify those incentives that will remain and those that need to be done
away with.

We will not allow another NBN-ZTE scandal to happen again. Whether from local or foreign
sources, all proposed contracts must undergo the scrutiny of correct procedures. I now ask for
your help with amending our Procurement Law.

According to our Constitution, it is the government’s duty to ensure that the market is fair for all.
No monopolies, no cartels that kill competition. We need an Anti-Trust Law that will give life to
these principles, to afford Small- and Medium-Scale Enterprises the opportunity to participate in
the growth of our economy.

Let us pass into law the National Land Use Bill.

It was in 1935, during the Commonwealth, that the National Defense Act was passed. There is a
need to amend for a new law that is more responsive to the current needs of national security.

I appeal to our legislators to pass the Whistleblower’s Bill to eradicate the prevalent culture of
fear and silence that has hounded our system.

We will strengthen the Witness Protection Program. We must remember that from 2009 to 2010
alone, cases which involved the participation of witnesses under the program resulted in a
ninety-five percent conviction.

There is a need to review our laws. I call on our lawmakers to begin a re- codification of our
laws to ensure harmony in legislation and eliminate contradictions.

These laws serve as the basis of order in our land, but the foundation of all rests on the principle
that we cannot grow without peace and order.

We face two obstacles on our road to peace: the situation in Mindanao and the continued revolt
of the CPP-NPA-NDF.

Our view has not changed when it comes to the situation in Mindanao. We will only achieve
lasting peace if all stakeholders engage in an honest dialogue: may they be Moro, Lumad, or
Christian. We have asked Dean Marvic Leonen to head our efforts to talk to the MILF.

We will learn from the mistakes of the past administration, that suddenly announced an
agreement reached without consultations from all concerned. We are not blind to the fact that it
was done with political motivation, and that the interest behind it was not that of the people.

We recognize the efforts of the MILF to discipline those within its ranks. We are hopeful that the
negotiations will begin after Ramadan.
To the CPP-NPA-NDF: are you prepared to put forth concrete solutions rather than pure
criticism and finger-pointing?

If it is peace you truly desire, then we are ready for an immediate cease- fire. Let us go back to
the table and begin talking again.

It is difficult to begin discussions in earnest if the smell of gun powder still hangs in the air. I call
on everyone concerned not to waste a good opportunity to rally behind our common aspiration
for peace.

Our foundation for growth is peace. We will continue to be shackled by poverty if the crossfire
persists.

We must understand that now is a time for sacrifice. It is this sacrifice that will pave the way for
a better future. With our freedom comes our responsibility to do good unto our fellows and to our
country.

To our friends in media, especially those in radio and print, to the block- timers and those in our
community newspapers, I trust that you will take up the cudgels to police your own ranks.

May you give new meaning to the principles of your vocation: to provide clarity to pressing
issues; to be fair and truthful in your reporting, and to raise the level of public discourse.

It is every Filipino’s duty to closely watch the leaders that you have elected. I encourage
everyone to take a step towards participation rather than fault- finding. The former takes part in
finding a solution; from the latter, never- ending complaints.

We have always known that the key to growth is putting the interest of others beyond one’s
own. One thing is clear: how do we move forward if we keep putting others down?

How will those without education secure quality jobs? How will the unemployed become
consumers? How will they save money for their future needs?

If we change all this, if we prioritize enabling others, we will open a world of opportunities not
just for ourselves but for those who direly need it.

We have already begun the process of change, and we are now able to dream of better things
for our country. Let us not forget that there are those who wish us to fail, so that they will once
again reclaim power to do as they please at the expense of our people.

My firm belief is that our fate is in the hands of God and our people. While we focus on uplifting
the lives of our fellow men, I have an unshakeable faith that Almighty God will give us His
blessings and support. If we remain firm in our belief that God is on our side, is there anything
impossible for us to achieve?

The mandate we received last May 10 is testament to the fact that the Filipino continues to hope
for true change. The situation is not what it was before; we can all dream again. Let us all
become one in achieving a fulfilment of our hopes and aspirations for our country.
Maraming Salamat Po!